New annuity from New York Life

New York Life Insurance Company has rolled out its Guaranteed Future Income Annuity, a new deferred income annuity meant to create pension-like income for retirees.

The annuity requires an initial premium payment of at least $10,000 and includes the following features:

• The ability to make subsequent premium payments during the deferral period, which is the time between the initial investment and two years prior to the income start date.
• The income start date can be adjusted for any reason — accelerated or deferred — one time.
• Policyholders can customize their payment stream to include another annuitant, inflation protection and legacy options, including a cash refund feature that provides beneficiaries with the difference between the premium payment(s) and any income received.

“With the continued decline of traditional pension plans and concerns about Social Security, many Americans are facing a retirement income gap,” says Chris Blunt, executive vice president in charge of retirement income security at New York Life. “Like a pension, the Guaranteed Future Income Annuity ensures that retirement income will be guaranteed for life — not just a bet on future returns that may or may not work out.”